Australian Dollar Little-Changed After July RBA Meeting Minutes
- Minutes from July RBA Meeting in Line with Status Quo Policy Bets
- RBA: “Most prudent course [is] a period of stability in interest rates”
- Australian Dollar Little-Changed After RBA Minutes Cross the Wires
The Australian Dollar spiked sharply upward before retreating to previous levels today when the Reserve Bank of Australia (RBA) released minutes from its meeting in July. FXCM’s Real Volume Indicator noted a sharp increase in trade volumes when this announcement was made.
The document made note of key factors including global and domestic growth as well as consumer sentiment. As earlier announced, the Bank stated its intention of keeping interest rates stable for now. The slow recovery in Australia’s major trading partners, an expected fall in mining investment in the coming quarters, and expectations of weak public demand over the next two years were key highlights. The RBA also reiterated that the exchange rate was high by historical standards.
The Australian Dollar remained largely unchanged as the RBA maintained the monetary policy status-quo and offered no meaningful changes in forward-looking rhetoric, leaving the markets without a catalyst for volatility. The next significant news release for Australia is the CPI report, coming up on July 23. Inflation rates usually play a significant role in determining forward monetary policy expectations and are closely watched by investors.
AUD/USD [15 min – 07/15/2014} Chart Created using FXCM Marketscope]
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